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Finney Company's condensed income statement is presented below: Revenues $955,000 Expenses Cost of goods sold $400,000 Operating and administrative expenses 204,000 Depreciation expense 57,000 661,000
Finney Company's condensed income statement is presented below:
Revenues | $955,000 | |||||
Expenses | ||||||
Cost of goods sold | $400,000 | |||||
Operating and administrative expenses | 204,000 | |||||
Depreciation expense | 57,000 | 661,000 | ||||
Income before taxes | 294,000 | |||||
Income tax expenses | 78,000 | |||||
Net income | $216,000 | |||||
Earnings per share (100,000 shares) | $2.16 |
The following data is compiled relative to Finney's operating segments:
Percent Identified with Segment | ||||||||||
Hotels | Grains | Candy | ||||||||
Revenues | 44 | % | 48 | % | 8 | % | ||||
Cost of goods sold | 45 | 46 | 9 | |||||||
Operating and administrative expense | 34 | 49 | 17 | |||||||
Depreciation expense | 45 | 44 | 11 |
Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities:
Operating Segment | ||||||||||||
Hotels | Grains | Candy | Totals | |||||||||
Operating and administrative expense | $14,000 | $12,000 | $4,900 | $30,900 | ||||||||
Depreciation expense | 4,000 | 4,800 | 3,700 | 12,500 |
(a) Prepare a schedule showing the amounts distributed to each segment.
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